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Logical Decisions - Classweb

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Thus, proportionally increasing the weight for Cost as we increase<br />

its range correctly compensates for the change and keeps equally<br />

preferred alternatives equally ranked.<br />

Top Down Vs. Bottom Up. An issue related to ranges and<br />

weights is whether preferences in a goals hierarchy should be<br />

assessed from the top down or the bottom up.<br />

The top down approach is to assess the relative weights of the<br />

highest level goal first and then to do lower level assessments to<br />

allocate each goal’s weight among its members. The bottom up<br />

approach is to first assess the relative weights of the lowest level<br />

measures within each lowest level goal and then to do higher<br />

level assessments to establish the relative weights of higher level<br />

goals.<br />

While both approaches are possible in LDW, the bottom up<br />

approach is preferred. This is because the top down approach<br />

makes it difficult to think about the measures below a goal when<br />

assessing its relative weight.<br />

When assessing the weight for a high level goal, it is tempting to<br />

think about the global significance of the goal’s name rather than<br />

the specific measures (and associated ranges) included under the<br />

goal. This can lead to too much weight assigned to a measure<br />

with a very narrow range or too little weight assigned to a<br />

measure with a wide range.<br />

In the bottom up approach, the decision makers will have thought<br />

about the measures under a goal before assessing the weight of<br />

the goal itself. This should lead to more reasonable weight<br />

assessments for the higher level goals.<br />

An even better approach is to use representatives (page 34) to<br />

assess each goal’s weight indirectly. Its easier to think about the<br />

range and importance of a single measure than to think about the<br />

whole set of measures represented by a goal.<br />

Ranges and Weights in LDW. The tradeoff method is the only<br />

weight assessment method in LDW that automatically<br />

compensates for changes in measure ranges. This is because the<br />

tradeoff method uses pairs of equally preferred alternatives and<br />

computes weights based on the measure ranges to make their<br />

utilities come out equal.<br />

9-54 Section 9 -- In Depth

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